The Emerging Alliance between CTV and DTC Brands

Press

April 10, 2019

Telaria, the complete software platform to manage video advertising for premium publishers, in partnership with Hulu, today published new research demonstrating how Connected TV (CTV), the medium of choice for young, affluent and educated consumers, is a key channel for Direct-to-Consumer brands (DTC) to increase reach and drive brand awareness among direct-to-consumer shoppers.

The study, titled “Emerging Alliances: How CTV and DTC Brands are Upending Traditional Paradigms for Performance-Minded Marketers,” found that DTC shoppers surveyed spend 70% more-time streaming TV each week than using social media. Their streaming TV consumption totals nearly 13 hours each week, nearly 20% more than time spent watching cable TV, and with DTC shoppers spending more time on CTV platforms, it’s clear that advertising on CTV is an effective strategy for growing brand awareness at an efficient cost.

DTC shoppers surveyed indicate they seek out brands that offer value, convenience, and choice. The same set of considerations apply when choosing their CTV/OTT services. Sixty-one percent of DTC shoppers watch their current favorite TV show through a connected TV experience. The study shows, that DTC shoppers who watch both linear and streaming programming are two times more likely to purchase a product after ad exposure than those with linear TV only.

Key findings include:

Ad relevancy was two times higher among DTC shoppers with ad-supported streaming services than those who only have linear TV.

82% of DTC shoppers take action after seeing an ad for a DTC brand on connected TV; of those, 51% visited the brand’s website and 47% searched for the brand online

80% of DTC shoppers think that DTC brands allow them to experience and connect with the brand more than when shopping on Amazon’s e-commerce site

“To date, direct-to-consumer companies have been remarkably successful in developing brand identity in an accelerated window, while simultaneously driving conversion. But they have outgrown banner ads and sponsored posts on social media. With optimization in their DNA, they are ready to tell their story on the big screen that sits in their target audience’s living room,” said Jennifer Catto, CMO at Telaria. “CTV fosters premium brand experiences through TV’s sight, sound, and motion, but is accountable to perhaps more modest budgets through digital’s measurable, data and decisioning outcomes.”

Radius-Global was commissioned for a 20-minute online survey fielded between February 12 – 20, 2019. Survey results are based on a sample size of 1,563 consumers aged 22-54 who watch at least seven hours of TV per week. Telaria also conducted 1:1 qualitative interviews with DTC shoppers on their shopping and TV viewing habits.